What is a Self-Employed Mortgage?

Being self-employed can make it hard to get a mortgage. Here at Finance Advice Centre, we are whole of market advisors. This means we have access to all lenders to get you the best deal no matter what your situation.

What about the length of accounts?

We have the options available to gain a mortgage for you with less than 1 year’s accounts. This is possible if you are in a profession such as a doctor, solicitor, dentist, architect, or vet to name a few.

What counts as being self-employed?

You will be viewed as self-employed by lenders if you own more than 20-25% of a business from which you earn your main income. For example, you could be a sole trader, a contractor, or a company director.

How do you get a self-employed mortgage?

In theory when you are self-employed and looking for a mortgage you will have the same options as anyone else and you will need to pass the lender’s affordability tests like every other borrower. However, without an employer to vouch for your wage self-employed people need to provide much more evidence of their income than other borrowers.

What do you need to provide for a self-employed mortgage?

As proof of your income when you apply for a mortgage typically you will need to provide: Two or more years certified accounts (as previously mentioned we work with lenders who will accept your application with less than this but in general this is the standard) SA302 forms or a tax year overview from HMRC for the past two or three years

What are self-certification mortgages, and can you still get one?

Self-certification or self-cert mortgages were designed specifically for self-employed people and allowed them to self-certify how much they earnt within any given year and no need to provide any evidence.

Do self-employed workers pay higher mortgage rates?

Self-employed mortgages aren’t necessarily more expensive, as long as you can provide enough suitable information about your income you can qualify for the same mortgage deal as someone with a similar salary in a permanent, full-time job. The mortgage rate you receive is more likely to depend on how much deposit you have saved to put down and your credit rating.

How can you boost your chances of getting a self-employed mortgage?

As with any mortgage applications there are steps you can take to improve your chances of being accepted. These include: Save as much as you can for a deposit Check your credit rating and do what you can improve if it’s too low Correct any mistakes on your credit report

How can you find the best self-employed mortgage deals?

The best way to find a competitive mortgage is by shopping around as much as possible and comparing deals from different lenders. Remember when you are comparing deals to factor in the cost of any fees as you could find it is cheaper to go for a mortgage with a higher interest rate but a lower fee.

How does the set-up of your business affect your mortgage chances?

The structure of your business can influence how lenders view your income when you are applying for a mortgage. See how lenders view each of the three main business structures below.

How much can you borrow for a self-employed mortgage?

Each lender has different criteria and policy on how much they will lend to a borrower. In this case it doesn’t really matter whether you are employed or self-employed, as long as you meet the criteria set out by the lender you can typically borrow up to 4.5 times your annual income.

Is it more difficult to get a self-employed mortgage as a contractor?

Applying for a mortgage as a contractor can be quite tricky sometimes. In part this is because lenders will have different criteria on what defines a contractor, which will in turn dictate how much mortgage you can get. Typically, you are either an employed person working on a fixed or short-term contract, or you are self-employed and work through one main company.

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Let us put you in touch with expert mortgage advisors who will give you impartial advice and help you find right to acquire mortgage deals suitable for you.

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So ... how can we help?

Buying a financial product such as a mortgage can be the biggest decision made in our lives. It is for this reason that impartial advice is critical from qualified advisors.

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Right to Acquire Mortgages When You Have Bad Credit

Finding a right to acquire mortgage when you have a bad credit history can be difficult and has to be approached with care due to the shortage of lenders open to accepting these circumstances in the market. Having the advice of an expert from Finance Advice Centre will significantly enhance your chances of being accepted for this type of mortgage. With a limited number of specialist providers out there, getting it right the first time is extremely important, and our team of professional advisers can help you do that. Contact us today to get started in finding the right mortgage deal and lender to suit your personal situation.

How can I get a right to acquire mortgage with bad credit?

Firstly, it is possible to get a right to acquire mortgage with bad credit by borrowing 100% of the Discounted Purchase Price to buy your Council Home. There are a small number of lenders that offer 100% mortgages, so you may not need a deposit if they are the right fit for you.

Right to acquire mortgages are readily available from high street lenders but the majority of them will only accept your application if you have a good credit history. That is why directly looking at specialist providers and having the help of an experienced adviser is the best first step in this situation.

The first thing you can do in the right to acquire mortgage process is download a copy of your credit file from a credit reference agency such as Equifax, Experian, or TransUnion. It could be the case that once your adviser has identified a suitable lender, you can get copies of your credit file from the agency the lender uses so you can be fully sure that your credit history will be considered by that particular lender.

Next, you should check to see if you will pass the lender’s affordability test. Your adviser from Finance Advice Centre can help with this process by gathering the necessary information about you and using it on the lender’s affordability calculator to see if you are likely to pass. If you pass this step then a full application form can be submitted with all the required supporting documents.

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Choosing a financial product or service, such as a mortgage, remortgage, loan or insurance can be daunting and your choice is a decision you need to get right. For this reason, it is vital that you get impartial advice from competent and qualified advisors. Whether you are a first-time buyer, looking to remortgage, hoping to remortgage or even buy a property to let, needing a loan or insurance this is where our advisers excel.

Be reassured that our aim is to guarantee reliable financial advice appropriate to any individual that makes contact with us. Through our network of contacts, we have access to thousands of financial products, from mortgages to loans to insurance, so we are confident that we’ll find one to suit you.

Key points of the Right to Buy mortgage scheme if you have bad credit

Up to 6 CCJ’s or payment defaults can be considered in the last year
Up to 3 late or missed rent payments can be accepted in the last year (only 1 in the past 3 months)
Interest only will be considered
There won’t be any early repayment charges, only a £195 Redemption Administration fee
Different sources of income can be accepted including employed, self-employed, DWP, benefits, or pensions
If you have the Right to Buy, but are struggling to find a mortgage, contact Finance Advice Centre and we can help get you in the right direction

As a mortgage is secured against your property, it may be repossessed if you do not keep up the mortgage repayments. Think carefully before securing other debts against your home.

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